- The quantum computing industry is enjoying a burst of momentum amid continued inflows of private capital, government grants and policy support, as well as materialisation of preliminary commercial revenues
- Global investment in quantum tech start-ups surged over six-fold in 2025, led by a significant surge in private capital; US government offered USD2bn under the CHIPS act to nine quantum firms in return for minority stakes
- The path to genuine economic impact for quantum technology remains long and uncertain; existing industry leaders to remain in net loss, with negative free cash flows over the next few years
- Investors would be better served staying with diversified technology ecosystems to participate in any eventual breakthrough, alongside measured exposure to direct players
Since our last publication on quantum computing (“Quantum Computing: Visionary Technology, Distant Commercial Reality”, published 20 Jan 2026), interest in the quantum computing industry has strengthened as private capital continues to flood in, governments write large cheques, and the first commercial revenues begin to materialise. Strategic implications—ranging from challenging existing encryption standards and exposing banking system vulnerabilities, to unlocking substantial economic value in pharmaceuticals and financial modelling—are also increasingly intriguing. Yet the technology’s path to genuine economic impact remains long, uncertain, and strewn with formidable technical obstacles. Investors tempted by the hype would do well to temper enthusiasm with realism.
Private capital leads the charge. Global investment in quantum-tech start-ups reached USD12.6bn in 2025, a y/y increase of more than 6x. Private sources such as venture capital, private equity, corporations, and public markets account for 97% of total funding in the sector, up sharply from previous years. Public money, once dominant, has shrunk to a mere 3% of the pie. This shift suggests that quantum technology is gradually moving from laboratory curiosity towards something closer to a commercial proposition.
Government and corporate deals add ballast. In May, the US government signalled its strategic seriousness by offering USD2bn under the CHIPS and Science Act to nine quantum firms, taking minority stakes in return. IBM alone is set to receive USD1bn to build a domestic chipmaking venture; others, including GlobalFoundaries, D-Wave, Rigetti, and Infleqtion, will share the rest. Meanwhile, dealmaking is consolidating the supply chain. D-Wave’s USD550mn acquisition of Quantum Circuits in January gave it a second platform; IonQ’s USD1.8bn planned purchase of SkyWater Technology will secure US foundry capacity. Such moves are less about immediate profits and more about securing the hardware and expertise for scale.
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